This Stock Is My Ultimate Contrarian AI Play

This tech stock has quietly reinvented itself, and its latest earnings suggest it may finally be turning the corner.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published August 1, 2025 3:45 pm EDT

| More on: BB

When most investors think of artificial intelligence (AI), they picture cloud giants, semiconductors, or buzzy upstarts. Not BlackBerry (TSX:BB). The name might still bring to mind those thumb-friendly phones from the early 2000s, but the tech stock has quietly reinvented itself, and its latest earnings suggest it may finally be turning the corner. If you’re a contrarian investor looking for a different kind of AI exposure, BlackBerry might be the wild card you’ve been waiting for.

Illustration of data, cloud computing and microchips — Source: Getty Images

A look back

Let’s not sugar-coat it: this tech stock has been a disappointment for years. Management shakeups, missed promises, and a pivot from hardware to software that took longer than expected left many investors frustrated. But its first-quarter results for fiscal 2026 offer a rare glimpse of momentum. For the first time since Q4 2022, BlackBerry turned a generally accepted accounting principles (GAAP) profit, reporting net income of $1.9 million and non-GAAP earnings per share (EPS) of $0.02. That’s no small feat in a space where even newer tech firms are burning through cash.

Revenue came in at $121.7 million, beating guidance and marking a strong start to the fiscal year. The QNX division, BlackBerry’s embedded software unit, posted $57.5 million in revenue, up 8% year over year, with an impressive 81% gross margin. That might not sound flashy, but QNX software is already used in over 235 million vehicles. With new partnerships like Leapmotor’s electric SUV platform and WeRide’s autonomous driving systems, QNX is finding itself at the centre of the automotive AI movement.

Showing value

But here’s where it gets really interesting. While Wall Street is chasing AI chips and cloud infrastructure, BlackBerry is tackling the other side of the AI boom: safety, security, and real-world integration. From smart vehicles to mission-critical systems, it’s positioning itself as the infrastructure layer for industries that can’t afford to get AI wrong.

And the market clearly isn’t pricing that in. As of writing, BlackBerry stock trades at a fraction of what it did during its meme-stock mania. Yet this past quarter, the tech stock generated $16.4 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). It returned $10 million to shareholders through buybacks, and still has nearly $382 million in cash and investments. Its total adjusted EBITDA for the full year is forecast to be between $72 and $87 million, with a return to positive operating cash flow expected.

Considerations

All that makes this a rare tech stock that isn’t just promising AI potential, it’s doing it with discipline. Capital allocation is improving, profitability is back on the table, and the QNX platform is starting to benefit from the electric vehicle (EV) and autonomous vehicle ramp-up in a way that’s less speculative than the big names still years away from commercial deployment.

To be fair, there are risks. Secure Communications’ dollar-based net revenue retention dropped slightly to 92%, and while recurring revenue was stable, growth isn’t yet explosive. Plus, BlackBerry’s Licensing segment, which brings in $4 to $6 million per quarter, remains a minor contributor compared to the core business. And let’s be honest, the stock still carries a lot of baggage.

But that’s exactly why it’s worth a look. Contrarian investing means betting on overlooked assets that others have written off. BlackBerry isn’t trying to win the AI race with flashy demos or promises of sentient machines. It’s building the safety belt for the AI-driven future and getting paid to do it.

Bottom line

In a world where every other AI stock feels overpriced or overhyped, BlackBerry looks, dare I say it, refreshingly boring, and profitable. That’s a combo I’ll bet on, especially when the rest of the market still thinks it’s a relic.